UK Autumn Statement 2023

The UK Chancellor of the Exchequer set out the UK Autumn Statement on 22 November 2023. While no new major changes to the UK tax system were announced, there were some noteworthy updates. The government has confirmed that it will make permanent the "full expensing" regime introduced earlier this year for businesses allowing them to claim an immediate full corporation tax deduction for qualifying capital investments. The Chancellor also announced a reduction in national insurance contributions (the UK’s social security contributions) for both employees and the self-employed.

Of interest to multinational enterprises will be the UK government’s on-going commitment to its implementation of Pillar 2 of the OECD global tax reform project. The UK will adopt its multinational top-up tax and domestic top-up tax for accounting periods beginning on or after 31 December 2023 and will adopt the under-taxed profits rule for accounting periods beginning on or after 31 December 2024. At the same time as implementing the under taxed profits rule, the UK will abolish its rules on offshore receipts of intangible property.

Finally, the government has confirmed its intention to merge the UK’s two R&D tax relief schemes with effect from 1 April 2024 with an aligned set of rules and a more visible "above the line" credit.

Read more about the highlights from the Autumn Statement 2023 below.